Posts Tagged: Accountancy job

Can Evolution and Innovation Reduce Tax?

Could you be missing out on tax relief by misinterpreting Evolution and Innovation?   Are we Innovators? If you ask most business owners if their business is at the forefront of innovation they will probably say no. However, if you ask them whether the business has kept up with the market trends to keep commercially… Read more »

Changes to Annual Investment Allowance

Find out how Annual Investment Allowance (AIA) is changing from 31st December 2020.     AIA lets you deduct 100% of qualifying expenditure from your tax bill. It has been capped at £1,000,000 for the years 2019 and 2020. However, from 31st December 2020 the cap is being lowered to its previous level of £200,000.  … Read more »

Claiming VAT on entertaining on Valentine’s Day

Claiming VAT on entertaining non-staff is usually not allowed, but there are certain times when you can do it.     The input VAT is usually not claimable on the costs of entertaining non-staff. This rule also applies to staff whose role is to look after the guests and make sure they enjoy themselves.   It… Read more »

A Christmas gift from the VAT man

The corporation tax rules for clients gifts are well known, but what about the VAT rules?     The corporation tax rules for entertaining clients or giving them gifts say that the gifts have to: Advertise to the public (i.e. a free sample) or Cost under £50 and include an advert for the company.  … Read more »

Tax relief on personally owned equipment

If you have a personally owned asset which you sometimes use for business, are you entitled to a tax deduction?     HMRC has a “wholly, exclusively, and necessarily” rule, which means you can’t get tax relief for expenses if there is any non-business use. However, this rule doesn’t apply in the same way to… Read more »

Long-term tax planning for children and shares

Your children might be too young to take over the family company, but can you reduce tax by giving your children shares now?     Parents try to mitigate their tax bills by diverting income to their children that are under 18. These schemes fail because of HMRC’s anti-avoidance rules called settlements legislation. These make… Read more »

Accelerated Capital Gains Tax

There will be major changes to the tax rule for gains made from the sale of residential properties which will take effect from April 2020.   At present capital gains made by individuals are reported through self assessment, i.e if you sell a property between 6 April 2019 and 5th April 2020 you must declare… Read more »

Transferring Assets to your Spouse – Is it tax avoidance?

Tax rules have changed considerably over the years. In 1936 the House of Lords famously ruled that “Every man is entitled, if he can, to order his affairs so that the tax is less than it otherwise would be”. But in 2013 the General Anti-abuse rule was introduced. This has given HMRC the power to… Read more »